2005 Idaho Code - 30-914 — ACCOUNTS TO BE MAINTAINED -- RECORDS OPEN TO INSPECTION -- RETENTION OF RECORDS -- TRUST ACCOUNT -- INTEREST ON ESCROW ACCOUNTS

                                  TITLE  30
                                 CORPORATIONS
                                  CHAPTER 9
                               IDAHO ESCROW ACT
    30-914.  ACCOUNTS TO BE MAINTAINED -- RECORDS OPEN TO INSPECTION --
RETENTION OF RECORDS -- TRUST ACCOUNT -- INTEREST ON ESCROW ACCOUNTS. (1) Each
licensee shall maintain sufficient books, accounts and records readily
accessible to the department for the department to determine at any time the
licensee's financial condition, what duties and responsibilities the licensee
has undertaken to perform and whether it is properly performing all such
duties, and any other information considered necessary by the director to
determine whether the licensee is operating in a safe, competent and lawful
manner. The books, records and accounts shall be maintained in accordance with
generally accepted accounting principles and sound business practice.
    (2)  For each individual escrow account, the licensee shall maintain the
escrow agreement and all amendments, all instructions affecting the agreement,
all related correspondence, and an individual ledger reflecting all activity
pertinent to that account.
    (3)  Each licensee shall continuously maintain the following general
accounts:
    (a)  A general ledger reflecting assets, liabilities, income, expenses and
    equity accounts;
    (b)  An escrow liability control ledger for all escrow accounts;
    (c)  A cash receipts and disbursements journal; and
    (d)  Copies of all receipts and disbursements used as a medium of posting
    to individual escrow accounts.
    (4)  (a) Every licensee shall keep a separate escrow trust fund account
    established at a financial institution located in Idaho, in which shall be
    kept separate, distinct and apart and segregated from the licensee's own
    funds, all funds or moneys of clients which are being held in trust by the
    licensee pending the closing of an escrow transaction or the full
    performance of the escrow agreement. All trust funds shall be deposited
    not later than the first banking day following receipt thereof. Such
    funds, when deposited, shall be designated as "escrow accounts" or given
    some other appropriate designation indicating that the funds are not the
    funds of the licensee.
    (b)  Every licensee shall maintain all other assets or property received
    pursuant to an escrow in accordance with a written escrow agreement in a
    manner which will reasonably preserve and protect the property from loss,
    theft or damage, and which will otherwise comply with all duties and
    responsibilities of a fiduciary or bailee generally.
    (5)  The records referenced in this section shall be reconciled at least
monthly.
    (6)  All records referenced in this section shall be maintained by the
licensee for seven (7) years following the close of each account.
    (7)  Any interest received on funds deposited with an escrow agency in
connection with an escrow must be paid over to the depositing party to the
escrow and may not be transferred to an account of the escrow agency. This
section shall not limit the right of the escrow agency to contract with the
depositing party with respect to the interest received on the deposits by
independent agreement.